Today's News

Burnaby, BC, March 27, 2025--(T-Net)--Tantalus Systems (TSX: GRID, OTCQX: TGMPF), a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data, announced its financial and operating results for the three-month period and full year ended December 31, 2024.

All amounts are presented in this news release are in United States dollars ("U.S. dollars"), unless otherwise indicated.

Q4 2024 FINANCIAL HIGHLIGHTS

• Revenue increased by 21% year-over-year to $12.6 million, setting a new milestone for revenue generated in a quarter. Revenue from Utility Software Applications & Services ("Software") increased by 36% while revenue from Connected Devices & Infrastructure ("Connected Devices") increased by 14%. The increases in revenue were a result of adding new utility customers and continuing to expand deployments with existing accounts. Recurring Revenue as a percentage of total revenue was consistent at 24% of total revenue in the quarter.
  
  
• Gross Profit Margin[1] increased 100 basis points to 52.4% as a result of increased contributions from the Software segment compared to the prior year period.
  
  
• Income for the period was $289,000 and decreased compared to last year as a result of the $2.3 million recovery of contingent consideration from the acquisition of DLC Systems, Inc. d/b/a Congruitive ("Congruitive") in the prior year period.
  
  
• Diluted income per share was $0.01 compared to $0.04 for the reasons stated above.
  
  
• Adjusted EBITDA1 increased to $1.4 million compared to $348,000 during the prior year period.
  
  
• The Company generated positive Cash Flow from Operating Activities of $3.3 million compared to $131,000 in the prior year.
  
  
• At December 31, 2024, Tantalus had available liquidity of $18.0 million compared to $5.2 million as at December 31, 2023. The available liquidity was comprised of a cash balance of $13.2 million and borrowing availability of $4.8 million under its revolving line of credit.

2024 FINANCIAL HIGHLIGHTS

• The Company achieved a new annual milestone by delivering $44.3 million of revenue, representing 5.1% growth over the prior year. Revenue from the Software segment increased by 12% as a result of adding new utility customers and continuing to expand deployments with existing accounts.
  
  
• ARR1 grew by over 10% year-over-year to $12.7 million as of December 31, 2024.
  
  
• Gross Profit Margin1 increased 200 basis points to 54% as a result of increased contributions from the Software segment compared to the prior year.
  
  
• Net loss was $2.6 million compared to $1.7 million last year. On a comparative basis, the prior year included a $2.3 million recovery of contingent consideration from the acquisition of Congruitive.
  
  
• Diluted loss per share was $0.05 compared to $0.04 last year for the reasons stated above.
  
  
• Adjusted EBITDA1 increased to $1.3 million as compared to negative $28,000 in the prior year.
  
  
• The Company generated positive Cash Flow from Operating Activities of $2.6 million compared to negative $0.8 million in the prior year.

Peter Londa, President and CEO, Tantalus Systems Corp. (Credit: Tantalus Systems Corp)

"Thanks to the hard work of our entire team and continued expansion of our community of customers, Tantalus was able to deliver record results in 2024 and reinforce our positive momentum heading into 2025," said Peter Londa, President & CEO of Tantalus.

"We delivered another year of growth and reverted to positive Adjusted EBITDA for the year, all while making significant investments in the commercialization of the TRUSense Gateway. We continue to gain traction with the TRUSense Gateway as utilities seek flexible and cost-effective solutions to modernize their distribution grids. Going into 2025, we believe Tantalus is well-positioned to help utilities accelerate their grid modernization efforts."

OTHER KEY DEVELOPMENTS

• Sales Order Conversion: The Company converted $11.0 million in sales orders from its sales pipeline bringing the year-end orders number to $51.2 million. In addition to representing approximately 46% growth in orders year-over-year, the Company set a new corporate record for orders converted from its sales pipeline during a calendar year.
  
  
• Growth of User Community: The Company added a record number of utilities in 2024 by adding 31 new customers, marking the most conversions in a calendar year for the Company.
  
  
• Bought Deal Financing: In May 2024, the Company completed a bought deal financing by issuing an aggregate of 6,250,000 common shares for total gross proceeds of approximately $7.3 million.
  
  
• TRUSense GatewayTM Progress: The Company announced the certification of the TRUSense Fiber Gateway in April 2024, the TRUSense Ethernet Gateway in July 2024, and the TRUSense Cellular Gateway in November 2024. In addition, the Company received orders from 27 utilities to commence field trials, pilots and deployments.
  
  
• Appointment of Board Members: In December 2024, the Company appointed Ms. Kristi Honey and Mr. David McLennan to its Board of Directors.
  
  
• Term Loan Advance: In December 2024, the Company obtained additional loan proceeds of $4.0 million from its existing term loan and used those funds to pay down its revolving line of credit.

SUBSEQUENT EVENTS

• Expansion of Leadership Team: Subsequent to year end, Tantalus announced the appointments of Mr. Azim Lalani as Chief Financial Officer and Mr. Chris Allen as Chief Operating Officer and Executive Vice President of Solution Strategy.
  
  
• Qualification for the OTCQX® Best Market to increase visibility and enhance liquidity: In February 2025, Tantalus began trading on the OTCQX® Best Market under the ticker symbol TGMPF.

ABOUT TANTALUS SYSTEMS HOLDING INC. (TSX: GRID, OTCQX: TGMPF)

Tantalus is a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data across all their devices and systems deployed throughout the entire distribution grid.

We offer a grid modernization platform across multiple levels: intelligent connected devices, communications networks, data management, enterprise applications and analytics. Our solutions provide utilities with the flexibility they need to get the most value from existing infrastructure investments while leveraging advanced capabilities to plan for future requirements. Learn more at www.tantalus.com.